September 6, 2001 13:23:23 Techniques to pay off your loan early By mcservices of Mortgage Purchasers Group Inc Mortgage Interest Adds Up ? by mcservices In the following example, making one additional loan payment every year will pay off a 30 year loan in 21&Mac185; ye years, saving the household calculate loan payments calculate loan payments $42,457 even after accounting for interest tax deductions (discussed in the Guide). Note: Instead of making one additional payment each year, you can also just make an extra one- twelfth of a payment each month. Compare ($80,000 loan at 10% with 30 year term): Making mortgage payments:Pay off freedom mortgage calculate loan payments in 21&Mac185; yearsPay off in 30 years Total Monthly Payments ($702 per month)179,010252,720 1 extra payment ($702) per yearor about $58 each month14,7420 Equals: Total payments on Mortgage193,752252,720 ... Interest paid on mortgage1113,752172,720 Savings from tax deductions (28%)(31,850)(48,361) Equals: Actual Cost of Mortgage81,902124,359 The difference between $124,359 and $81,902 is $42,457 (this is the bankruptcy attorney calculate loan payments amount saved by paying off the loan early). The Guide provides further examples of how to compare mortgage savings versus other investment returns such as mutual funds, savings accounts, etc. 1 Determined by subtracting the original loan amount ($80,000) from the total payments made to the lender. consolidating debt calculate loan payments The difference is interest paid.